Grains Rebound as Planting Progress Accelerates

Weather conditions have allowed producers to accelerate planting progress in the past couple of weeks, which has weighed on grain prices. Corn planting increased from 17% complete two weeks ago to 62% complete in the latest data release. This is 6 points behind last year’s pace and 1 point behind the five-year average. South Dakota is the furthest behind in planting, having 21% of their crop planted vs. a five-year average of 61%. Indiana is the furthest ahead of schedule with 73% planted vs a five-year average of 52%.  Ohio made the most progress over the latest week, planting 32% of its crop during that time frame.

Corn Prices

Corn prices rebounded on Thursday in early North American trade after whipsawing and closing lower after an intra-day breakout. Prices broke out above the 3.99 highs and are poised to test target resistance near the June 2016 highs at 4.39.  Support is seen near the 10-day moving average at 3.96.  Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).

Soybean Prices

Soybean prices are higher on Thursday after testing support near an upward sloping trend line that comes in near 995. Resistance is seen near the 10-day moving average at 1011. Momentum is negative to neutral as the MACD (moving average convergence divergence) histogram prints in the red with a flattening trajectory which points to consolidation.

The soybean crop moved from 5% planted to 35% over the past two-week period.  Minnesota is the state furthest behind schedule, having only 11% of the crop planted vs. a 5-year average of 37%.  Illinois is the furthest ahead of schedule 66% complete vs a 5-year average of 24%.  Illinois showed the most progress over the past week, getting 37% of its crop planted.

Wheat Prices

Wheat prices surged higher in early North American trade and is testing resistance is seen near the 10-day moving average at 5.05. Support is seen near the 50-day moving average at 4.93. Negative momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in the red with a rising trajectory which points to consolidation.